Wells Fargo & Company Issues Pessimistic Forecast for American Financial Group (NYSE:AFG) Stock Price

Key Points

• Wells Fargo lowered its price target for American Financial Group from $175 to $166 while maintaining an “overweight” rating, implying 16.36% upside from the stock’s $142.66 price.
• Analyst sentiment is mixed, with two Buy ratings and three Hold ratings; the consensus rating is “Hold” and the average price target is $152.75.
• American Financial Group exceeded quarterly expectations, reporting $2.82 EPS versus the $2.32 consensus and $2.03 billion in revenue, up 5.5% year over year. Insiders recently sold shares, while institutional investors own 64.37% of the company.

American Financial Group (NYSE:AFG - Get Free Report) had its target price lowered by stock analysts at Wells Fargo & Company from $175.00 to $166.00 in a report issued on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the insurance provider's stock. Wells Fargo & Company's target price would indicate a potential upside of 16.36% from the company's current price.

A number of other equities research analysts have also recently issued reports on AFG. Weiss Ratings upgraded shares of American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Wall Street Zen lowered American Financial Group from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Piper Sandler lifted their price objective on American Financial Group from $140.00 to $156.00 and gave the stock a "neutral" rating in a research note on Monday, August 10th. Finally, Keefe, Bruyette & Woods cut their price objective on American Financial Group from $153.00 to $147.00 and set a "market perform" rating for the company in a research report on Monday. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $152.75.

American Financial Group Stock Performance

Shares of NYSE AFG traded up $1.57 during trading hours on Monday, hitting $142.66. 33,569 shares of the stock were exchanged, compared to its average volume of 510,208. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.49 and a quick ratio of 0.49. The company's 50 day moving average is $142.34 and its 200 day moving average is $137.36. The firm has a market capitalization of $11.83 billion, a P/E ratio of 12.47 and a beta of 0.59. American Financial Group has a one year low of $123.09 and a one year high of $148.71.

American Financial Group (NYSE:AFG - Get Free Report) last posted its earnings results on Tuesday, August 4th. The insurance provider reported $2.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.32 by $0.50. The business had revenue of $2.03 billion for the quarter, compared to analyst estimates of $1.85 billion. American Financial Group had a net margin of 11.51% and a return on equity of 20.35%. American Financial Group's revenue was up 5.5% compared to the same quarter last year. During the same period last year, the business posted $2.14 EPS. On average, research analysts expect that American Financial Group will post 12.29 EPS for the current year.

Insider Activity

In related news, CFO Brian S. Hertzman sold 950 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $142.87, for a total value of $135,726.50. Following the sale, the chief financial officer owned 11,123 shares of the company's stock, valued at $1,589,143.01. The trade was a 7.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Mark A. Weiss sold 2,813 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $144.76, for a total transaction of $407,209.88. Following the completion of the transaction, the vice president directly owned 6,648 shares of the company's stock, valued at $962,364.48. This trade represents a 29.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 16.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Louisiana State Employees Retirement System acquired a new stake in American Financial Group during the 1st quarter valued at $2,567,000. First Trust Advisors LP raised its position in American Financial Group by 433.2% in the 1st quarter. First Trust Advisors LP now owns 316,974 shares of the insurance provider's stock valued at $40,481,000 after purchasing an additional 257,522 shares during the last quarter. Bank of Nova Scotia bought a new position in American Financial Group in the 2nd quarter valued at $6,760,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in American Financial Group in the second quarter worth $1,121,000. Finally, Y Intercept Hong Kong Ltd boosted its stake in American Financial Group by 281.1% in the first quarter. Y Intercept Hong Kong Ltd now owns 28,243 shares of the insurance provider's stock worth $3,607,000 after purchasing an additional 20,832 shares in the last quarter. Institutional investors own 64.37% of the company's stock.

American Financial Group Company Profile

American Financial Group, Inc is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group businesses, the company primarily provides property and casualty insurance products, with an emphasis on specialty commercial markets that require specialized underwriting expertise.

Its insurance offerings include coverage for commercial transportation, agriculture, workers' compensation, excess and surplus risks, environmental exposures, inland marine, and other niche industries.

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